We could debate the fairness
of the real estate market all day long. I think many would argue it is not fair at all. I guess it
depends on your situation. If you are getting ready to buy a house, the market
is fair and getting better. If you are a homeowner looking to sell, it is completely
unfair. I’m reminded of something my dad used to say. Whenever I felt a
situation was unfair I would say “but dad,that’s not fair.” His response was
always “life isn’t always fair you got to deal with what you got.” So what do we got?
One company, National City Bank, has come out with a Housing
Valuation Analysis. They break down different markets and rate them as
Under Valued, Fairly Valued, Moderately Overvalued, and Overvalued. With the recent price declines, the
Reno/Sparks area is now ranked as fairly valued. This is good news because over the last 3-4
years we have been ranked as overvalued.
So does this mean the market has hit bottom and turning around?
Does it mean prices will quit falling? No one knows the real answer to that,
all we can do is look at the numbers and make an educated guess. What I do know
is the upside to falling prices is greater affordability for more people. Greater affordability will increase demand. Increase in demand should create more sales
and reduce inventory. The wild card is the inventory, and I’ll address that is
a later post.
For now this is small piece of good news and a step in the right direction for our market.
https://www.nationalcity.com/main/micro-site/economics/commentary-analysis/pages/housing-valuation-analysis.asp?WT.vanity=HouseValuation
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